JB Chemicals & Pharmaceuticals (JBCPL) today said it would sell its prescription products business in Russia and CIS countries to Dr Reddy's Laboratories for Rs 137.5 crore.
Earlier this month, JBCPL had completed the Rs 939 crore deal to sell its over-the-counter business in Russia and CIS countries to Johnson & Johnson arm Cilag GmbH International.
The company's board, which met today, granted approval to the company for entering into a definitive agreement to sell its Russia-CIS prescription products business to Dr Reddy's Laboratories, JB Chemicals & Pharmaceuticals said in a filing to the Bombay Stock Exchange (BSE).
The transaction involves sale of product registrations, intellectual properties etc. The consideration for the sale of this business is Rs 137.5 crore, it added.
Dr Reddy's Laboratories' affiliate has also entered into a contract with JBCPL's wholly-owned subsidiary situated in Russia for purchase of its inventory for a consideration of $3.90 million, it said.
Commenting on the development JBCPL Chairman JB Mody said: "The decision to sell remaining Russia-CIS business has been taken in interest of the company and the sale proceeds will help company pursue growth opportunities in domestic formulations, rest of the world exports and contracts manufacturing business."
The Mumbai-based firm has also inked a pact with Dr Reddy's Laboratories to supply finished products for the acquired business, it said.
"This supply agreement is a testimony to the quality and competitiveness of JBCPL's branded portfolio and its world class manufacturing capabilities," Mody said.
The transaction is expected to close in the current quarter, the company said.
In a separate filing to the BSE, Dr Reddy's Laboratories said the acquisition includes 20 key brands, including Jocet which gives Hyderabad-based firm an entry into $256 million cold and cough market in Russia, CIS markets.
"This acquisition will help expand our prescription, hospital and OTC portfolio, complement our existing strong basket of products and add to our growth aspirations in the Russia and other CIS region," Dr Reddy's Laboratories Managing Director and COO Satish Reddy said.
Russia is one of the company's leading markets where it enjoys a strong equity with stakeholders, he added.
Shares of JB Chemicals & Pharmaceuticals today closed at Rs 143.75 on the BSE, up 1.13% from its previous close.
